Researchers are recommending the state sell the 315-acre campus where the Dorothea Dix mental hospital sits for $40 million dollars.
The land-use researchers told a legislative panel Friday that selling the land would make way for government and commercial development.
Those recommendations came from the Urban Land Institute, a Washington-based think tank that has offered advice to New Orleans and New York City.
The group suggested building a large park and developing housing, retail and government space on the hospital campus just south of downtown Raleigh. The hospital is slated to close in 2008.